After Tumbling At Open, Chinese Stocks Erase All Losses
It's a miracle...
SHANGHAI COMPOSITE INDEX SET TO OPEN DOWN 3% ... 20 Minutes later... SHANGHAI COMPOSITE INDEX ERASES LOSS, RISING 0.3%
— zerohedge (@zerohedge) January 5, 2016
"Someone" stepped in and bid the entire Chinese market higher off its huge opening gap down...
Despite the biggest liquidity injection (CNY130bn) in 4 months, it appears Kyle Bass' top trade remains well on target as Offshore Yuan plunges, underperforming Onshore Yuan despite the largest Fix devaluation in two months. In a word - it's chaos in Chinese markets. The Shanghai Composite looks to be opening down 3% - extending yesterday's losses (beyond the US session's ADR's move). What a mess.
First: PBOC devalues the Yuan fix by the most in 2 months...
Offshore Yuan continues to collapse and remains over 1000 pips cheap to onshore Yuan...
Despite the biggest liquidity injection in 4 months
The People’s Bank of China will inject 130b yuan into the banking system using 7-day reverse repurchase agreements today, according to two traders at primary dealers required to bid at the auctions.
Amount injected in operation today is most since Sept. 8
and all of this has left Chinese stocks plunging....
China better start arresting malicious sellers stat
— zerohedge (@zerohedge) January 5, 2016
Charts: Bloomberg
(9 votes)
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Buckle Up! Will China devalue Yuan? Or will they say, "You know what, we have had enough. Gold will now be 50,000 yuan per ounce."
Chinks know how to juice their stock markets.... I just watched the Shanghai go from 1% down
to 1% up in about 2 minutes. The Fed should watch and learn.....and Q the FEd. There they go...
Futures are rising fast...It can't be that hard when you can print unlimited amounts of $.
Zeroes...you don't have to be lonely, at Farmer's Only dot com! Instead of chewing your cud and whacking your pud in frustration on here with your shriveling gold bucks, get a life.
City Folks Just Don't Get It!
Ho lee phuk, sum ting wong...
FORWARD!!!
'Ahh soooo .... Re crawl thris the Invrisraburl Hrand Trick'
I don't know, Zorba. The Feds (PPT) were pretty impressive with their manipulation of the DJIA today in the last half hour of trading (as they always are).
Took the sting right out of a seriously bad day and turned it into nothing but jitters.
We may have to consider that those behind the keyboards controlling China's stocks and those behind the keyboards controlling America's stocks either are the same people, are trained by the same people, answer to the same people, or some or all of the preceding.
fulz
Futures didn't rise for very long before dropping straight back.
1. Yes.
2. No. (see question #1)
A gold-backed yuan does China no favors. They want to meddle and rig as much as any central planner - why would they tie their hands with gold?
Their bet on gold is in case the whold system collapses. Then they'll have something to price their currency to - but that is only in a worst-case scenario.
why would they tie their hands with gold?
Because anyone who doesn't will be swept away in the collapse. Every intelligent person in power will see this coming.
Better to have a parachute when the plane goes down, than not.
I think the plane's going down - not sure how quickly, though.
Wouldn't that be a nice piece of information to have?
Isn't going down slowly called a landing?
Not if you land in a forest.
you got it wong ---the gold is for the party elite to be able to buy off as many of the military as needed to survive the hangman--
thats what gold is used for---
Good thing they'll halt the market if it is down another 7%. That'll fix everything.
As it moves toward zero at least 7% won't take long.
Halting the markets must do wonders for peoples confidence in them, don't you think?
Winter is here.
Time for these fucking slopes to announce their own gold price.
China will have to arrest some folks to make this better.
"Criminal, unpatriotic short selling capitalists all of them! Wealth belongs to the state alone!!!" - Vice Public Security Minister Meng Qingfeng /////
Toldja ;-)
Bear Stearns is fine.
When does the selling ban get lifted? How will the PRC PPT OPP handle this later in the week?
Friday. This is a lot of front running.
So who will buy US debt?...it has increased $770 Billion since Nov 1.... http://www.treasurydirect.gov/NP/debt/current
The Fed.
POMO - Permanent Open Market Operations.
They didn't call it TOMO for a reason.
Federal Reserve Chairman Ben S. Bernanke said further gains in the U.S. labor market are needed for the central bank to consider reducing its record monetary easing.
“Obviously, there has been improvement,” he said at a news conference in Washington today after the Fed decided to leave the pace of asset purchases unchanged at $85 billion a month. “One thing we would need is to make sure that this is not a temporary improvement.”
March 20, 2013 — 4:31 PM CDT
So that $21.6b China just injected got the indexes back to flat.
What a brilliant investment. Let's spend money to get our investments back to par.
This is making a madhouse look sane.
Another demonstration that the Chinese are very prone to herd behavior.
Humans are pack animals. Very rarely do people fly solo. Only the shaman does, and the only person who respects the shaman is the chief.
Reminds me of the U.S. Plunge Protection Team in the last 45 minutes of trading.
U.S. manipulators plunge late, China plunges early; of course we read a page of text differently too.
News is serious when they interrupt The Bachelor.
If this equity selling continues in China it's going to make the Saudi beheadings look like the good ole' days.
<Too soon?>
Everything just went vertical and is back to even for the day. Nothing to worry about. Now back to work your money is safe in the fixed market. For now. But the global markets can't carry the charade on indefinitely.
Indefinitely, yes. Infinitely, no.
The diminishing returns are intensifying. $21.5b to get the index up 3%. The POMO desk/ESF desk moved US equities 1.5% with $3.5b. So that is what it is taking to move the markets. $25b a day, not counting whatever the BoJ and ECB are injecting.
Ho Lee Fuk!
We too low. I tell you that never gets old.
Up once again. Will you look at that. End of the world averted again by miracle money. They can keep this shit up for years and years.
Remember the rule of modern investing: You do not invest the trade, you invest the government intervention. QE, ZIRP, etc., that's what you watch for and just beat the lemmings to it.
Controlled cool-off to build in the shorts while squeezing the longs; then load the shorts and have that "January Effect".
Look, China is a facist, corrupt, brutal, undemocratic and evil country. In no way this fucked up 'communist' Stalin state can ever save the western shrinking economies.
All countries are run by corrupt, brutal, undemocratic fascists, aren't they?
Can you can think of one that isn't.
Countiries are herd control mechanisms, nothing more.
Iceland..... for now
Look, America is a facist, corrupt, brutal, undemocratic and evil country. In no way this fucked up 'communist' Stalin state can ever save the western shrinking economies.
[Tylers, you're strike out format does not function properly.]
Fixed it for ya.
Is it already 330 in China ????
My oh my which dip to buy....
I think I'll stick with French onion. It has less bite to it. ;-)
"Update: It's a miracle..."Someone" stepped in and bid the entire Chinese market higher off its huge opening gap down..."
Sounds like a old girlfriend I once had.....she bought a miracle bra......and then.....Its a miracle!.......
Maybe China needs a new bra........